Joseph Rowntree Foundation proposes rent controls and tax reforms

The Joseph Rowntree Foundation is calling on the government to implement rent controls to slow rising costs and reduce the financial burden of Local Housing Allowance (LHA) uprating. The charity argues that rent controls could reduce the cost of relinking LHA to local market rents by £1.1 billion in 2030/31, representing a 40% reduction in uprating costs.

To mitigate the impact on landlords, the foundation proposes reinstating full mortgage interest tax relief, reversing restrictions introduced in 2015. This proposal suggests funding the relief by charging National Insurance Contributions on rental income. The charity warns that if LHA rates remain frozen, private renters on housing benefits could be £700 a year worse off by 2029, potentially pushing tens of thousands of people into poverty.